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RIYADH: ������Ƶ’s Capital Market Authority approved a regulatory framework enabling licensed firms to offer sukuk and debt instruments through crowdfunding platforms, expanding financing access and diversifying funding sources. 

The framework, effective immediately, applies to institutions licensed for “arranging” activities and follows an experimental phase that began in the second quarter of 2021. 

The authority introduced amendments to the Rules on the Offer of Securities and Continuing Obligations, the Rules for Special Purpose Entities, and the Capital Market Institutions Regulations. 

The CMA aims to broaden participation in the debt market, deepen its structure, and enhance liquidity by enabling crowdfunding-based debt offerings as part of exempt cases under the offering rules. Private placements are also permitted, potentially increasing the scope and size of such offerings. 

“The framework is designed to increase the number of capital market institutions engaged in fintech activities and supports diversification and sustainability of corporate funding sources,” the CMA said. 

During the experimental phase, the sukuk crowdfunding market witnessed growth, with issuance rising to SR3.4 billion ($905.94 million) in 2024 from SR1.5 billion in 2023. The number of firms licensed under the framework increased to 17, up from 14 the previous year.

The CMA also introduced governance reforms for SPEs, aimed at streamlining procedures and facilitating securitization transactions. 

Amendments broaden the eligibility criteria for sponsors, allow debt issuance via exempt offerings, and clarify the roles of board members and fund managers. They also mandate independent trustees to represent debt holders and require that board members be unaffiliated with sponsors or originators. 

The number of licensed SPEs rose to 1,239 by mid-2025, an 87.2 percent increase from the previous year, reflecting growing interest from fintech firms and small and medium-sized enterprises. 

The reforms are expected to boost liquidity, enhance market depth, and create new investment opportunities, particularly in the sukuk and asset-backed financing segments. 

The CMA’s recent regulatory actions reflect the continued expansion and diversification of ������Ƶ’s capital markets. 

By the end of the second quarter of 2025, individual investment portfolios rose nearly 12 percent year on year to 13.91 million, while managed portfolios grew 29.5 percent. Total assets in these portfolios reached SR352.6 billion. 

The growth, alongside rising foreign investments and stronger engagement in international markets, underscores increasing investor participation and interest in a broader range of financial instruments beyond traditional equities. 

RIYADH: The Gulf Cooperation Council’s financial markets are set to strengthen investor communication and transparency with the launch of a new Unified Investor Relations Guide for 2025, the GCC Financial Markets Committee announced. 

Developed in partnership with key regional exchanges, including Boursa Kuwait, Saudi Tadawul, Abu Dhabi Securities Exchange Group, Dubai Financial Market, Bahrain Bourse, Muscat Stock Exchange, and Qatar Stock Exchange, the guide lays out a structured framework to enhance disclosure practices, integrate environmental, social and governance considerations, and boost stakeholder engagement across listed firms. 

The guide aligns with broader initiatives to modernize the region’s financial ecosystem and position the region as an attractive destination for global capital. 

The timing of the guide’s release comes as Gulf equity markets continue to attract inflows from foreign investors. 

According to PwC Middle East’s analysis published in May, GCC initial public offerings raised $1.6 billion in the first quarter of 2025, marking a 33 percent increase from a year earlier, with ������Ƶ accounting for nearly 69 percent of proceeds. 

“This guide is a strategic step toward unifying investor relations standards and practices across the GCC’s capital markets, contributing to the enhancement of transparency, credibility, and strengthening investor confidence,” said Mohammad Saud Al-Osaimi, the CEO of Boursa Kuwait. 

The guide recommends best practices on communication protocols, regulatory disclosures, crisis management, and governance structures, designed to streamline investor relations while ensuring compliance with international standards. 

“It reflects the GCC Financial Markets Committee’s commitment to providing practical tools that enhance the communication channels between listed companies and their investors, as well as supporting the sustainable growth and development of capital markets,” he added. 

The guide’s recommendations include structured disclosure calendars, management of material events, insider watch-lists, and policies to address rumors and market manipulation. It further emphasizes ESG reporting as a growing requirement among global investors, encouraging firms to integrate sustainability metrics into strategic planning and reporting frameworks. 

“The GCC Unified IR Guideline 2025 is a key milestone in reinforcing transparency and investor trust across the region,” said Abdulla Salem Al-Nuaimi, group CEO of Abu Dhabi Securities Exchange. 

He added: “At ADX, we actively champion best-in-class investor relations, from training programs to ESG integration, empowering issuers to engage more effectively. We are proud to be part of shaping this framework that strengthens the GCC’s standing as a global investment hub.” 

While adoption of the guide remains optional, market participants view it as a key tool for fostering credibility and facilitating smoother access to both regional and international investors. 

As corporate governance and transparency gain prominence in capital markets, the guide aims to offer firms a roadmap to strengthen investor confidence and attract long-term investment flows, supporting broader economic diversification efforts across the GCC.